By Hayden Briscoe and Jenny Zhu, AllianceBernstein
Despite worries about a collapse in China’s property market, we think that the financial system will navigate the coming credit cycle if banks can buy time to resolve loan problems — and receive government support if needed. Continue reading »
By Hayden Briscoe and Jenny Zeng, AllianceBernstein.
Concerns about a possible collapse in China’s property market continue to grow. However, our research suggests that fundamentals are more robust than many people think. The biggest danger lies in the potential for policy mistakes.
Investors are understandably worried about the headlines coming out of China’s property sector. Sales fell in July after having seemed to stabilize in June. For the first half of this year, sales nationally fell by 6.7% year over year, to Rmb3tn (US$488.4bn). That’s the first time such a steep fall has occurred since 2011. Continue reading »
Mexico has a brand new police force, the gendarmería tasked with beefing up the country’s crackdown on crime.
But according to the Inter-American Development Bank (IDB), it may have a powerful crime-fighting weapon already: remittances. Continue reading »
Ratan Tata (pictured), who was the head of India’s powerful Tata group until 2012, ushered in a period of ambitious international expansion at the company. He is one of the most respected figures in the business community today.
On Wednesday, it was announced that the illustrious businessman has personally invested in Snapdeal, the online marketplace that is battling to win a share of India’s fast-growing market for ecommerce. Continue reading »
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A report to be released by the Institute of International Finance on Wednesday will make sobering reading for EM investors: portfolio flows to EM assets fell sharply in August to just $9bn, after a monthly average of $38bn between May and July.
August is always a slow month but this year it has been notably sluggish. EM bond issuance, for example, was just $22bn this month from a monthly average of $62bn over the past year and $44bn in August 2013, the IIF said. Continue reading »
Hyun Song Shin, head of research at the Bank for International Settlements, has been sounding alarm bells over the debt issued by emerging market corporates since last year. His latest research, presented to the BIS AGM last month, explains how investors’ hunger for yield has put them on a hair trigger for selling should anything go wrong.
Shin’s paper shows how many more long-duration EM bonds asset managers are holding than they were in 2008. Continue reading »
By Stefan Jajecznyk and Taras Kuzio
As fighting in the Donetsk and Luhansk regions intensifies, the first foreign member of the Ukrainian military has become a casualty of Russia’s proxy war. Codenamed ‘Franko’, Mark Paslawsky who grew up in the Ukrainian diaspora in New Jersey and was a West Point-trained officer in the US Rangers, gave up his US citizenship for a Ukrainian passport and the chance to serve in the Donbas volunteer battalion, one of more than 20 in Ukraine’s newly formed National Guard.
Paslawsky (pictured above) was wounded by shrapnel on August 18 during a firefight with separatists and Russian paratroopers in the outskirts of the regional capital of Luhansk. With no air ambulance available he could not be saved by medics. He was buried this week. Continue reading »
China’s property slump – which in July was characterised by widespread declines in city real estate prices coupled with falling sales volumes – appears to have carried over into August, data for the first half of the month shows.
Data from 42 large cities monitored by China Confidential, a research service at the Financial Times, shows a 20 per cent year on year decrease in home sales in the first 17 days of August. Unsold inventory in 14 large cities jumped by 48 per cent year on year in the same period, the data shows (see chart). Continue reading »
A surge in the popularity of automated banking services in South Korea has slashed the number of people who still use bank branches to a small minority, encouraging industry restructuring.
According to a Bank of Korea research report, only 11.2 per cent of South Koreans used branches as of June, compared with 88.8 per cent using automated channels such as ATMs, internet banking and mobile banking. Continue reading »
** FT News **
* Evidence grows of Russian army in Ukraine | Kiev releases videos of four captured Russian soldiers who say they were sent by Moscow to eastern Ukraine for military operations
* Israel and Hamas agree open-ended truce | Both sides accept an Egyptian-brokered open-ended truce after a day in which Hamas fired some of the heaviest barrages of rockets since the war began Continue reading »
For more than 50 years, citizens of Communist Cuba have been assured access to basic foodstuffs by the libreta, or ration book. But the subsidised system in increasingly controversial and last year Raúl Castro, the country’s president, rubbished it as “paternalistic, irrational and unsustainable”.
Nevertheless, across the Caribbean, Castro’s friend and colleague Nicolás Maduro of Venezuela is planning a similar system in a bid to combat the shortages that are ravaging the home of 21st century socialism. Maduro said his government would introduce a rationing system using mandatory fingerprinting in supermarkets, calling it “perfect” and an “anti-fraud blessing”. Continue reading »
Deutsche Post DHL, which makes money by shipping parcels around the world, plans to invest at least €100m in India over the next two years and is piloting a new e-commerce model for the Asia Pacific in the fast-growing market.
The move reinforces the recent take-off in India’s online shopping sector, as large platforms consolidate, infrastructure improves and internet penetration rises. Continue reading »
** FT News **
* Ukraine president calls snap elections | Complete overhaul of government was one of the central demands of protesters who toppled the previous president, Moscow-friendly Viktor Yanukovich
* India declares coal mining licences illegal | Ruling plunges battered resources sector into fresh uncertainty with sharp falls in share prices of Tata Steel and Hindalco Continue reading »
On Friday, as Russian trucks carrying humanitarian aid entered eastern Ukraine, another, less remarked on convoy was on its way to the Donbas. Dozens of vehicles carrying food, personal hygiene products and medicines entered the region from the west, provided by businesses controlled by Rinat Akhmetov, the Ukrainian billionaire whose industrial assets are concentrated in this part of Ukraine. Continue reading »
By Ben Aris of bne
Presidents Petro Poroshenko of Ukraine and Vladimir Putin of Russia are to meet in Minsk today for the first time since fighting broke out in eastern Ukraine. Expectations for a peace deal are low. But what can each side put on the table to try to end a conflict that is killing thousands and smashing to pieces the most productive part of the country? Continue reading »